In January 2019, the National Broadcasting and Telecommunications Commission (NBTC) approved in principle for recall of the 700MHz band, currently being used for digital terrestrial television, for 5G development in Thailand.
With this process, the two options are offered
1) switching to 470MHz bandwidth or
2) returning the digital TV license and discontinued operating.
In consideration of strategic factors, competitiveness and financial stability, EIC expects around 4 operators to give up their licenses.
These 4 discontinued operators will lead to insignificant effects on overall industry as the sum of revenues only accounts for 2% of the total digital TV ad spending and consumers still enjoy the remaining digital TV channels.
At the same time, digital TV network providers will lose a minimal amount of incomes and NBTC will subsidize about 20-25 billion baht on reforming spectrum.
However, the remaining digital TV operators will continue facing challenges from economic fluctuations, NBCT’s policies and regulations, and technology deployment.
To prepare themselves for future business landscape, trends of Omni-channel, content licenses, and home shopping are arisen to contribute additional revenue and competitiveness.
Recalling 700MHz spectrum band to develop 5G technology
Currently, most mobile operators in Thailand hold insufficient spectrum in low frequency ranges (sub-1GHz) for 5G development and the 700MHz spectrum band has been occupied by digital TV broadcasting.
In order to resolve the situation, NBTC approved in principle for recalling 700MHz spectrum band to develop 5G technology to align with other countries such as Spain, Belgium, England, and Malaysia.
Digital TV industry encounters pressures from both revenue and cost perspectives leading to a downward trend in operating margin.
TV industry currently consists of 22 digital TV channels which can be divided into 4 main categories including
1) Children and family, 2) News, 3) Standard Definition (SD), and 4) High Definition (HD).
Advertising is main source of Digital TV’s revenue
Advertising is main source of Digital TV’s revenue and it has been slightly worrisome in the past 5 years from 124 billion baht in 2014 to 119 billion baht in 2018 (-6%CAGR) in response to economic fluctuations, deceleration of purchasing power, and a shift in consumer behaviour towards TV substitutes and online media.
In the middle term (2019-2021), EIC expects the advertising revenues tend to increase by 5%CAGR based on an economic recovery.
Due to an intense competition between TV and online media, however, digital TV operators continuously get pressure on the creating a rich content which likely to rise operational costs and reduce operating margin from about 10% in 2019 to 8.8% in 2021. This will result in a downtrend in operating margin of digital TV business
Figure 1 : The total value of the advertising industry, and the revenues and operating margin of digital TV business
Unit : billion baht
Remark : Outdoor media includes billboards, cinema, In store, transit; Traditional media includes magazines, newspapers and radio
Source : EIC analysis based on information from Nielsen, Digital Advertising Association (Thailand) and Enlite
Apart from broadcasting digital TV, spectrum is also used for telecommunication network. In a transition period from 4G to 5G, the International Telecommunication Union (ITU), a specialized agency who develops standards and be responsible for information and communication technologies related issues, has identified 5G spectrum with the combination of sub-1GHz, 1-6GHz and above 6GHz.
The commission made the retrieve prior to the end of digital TV license which will be due in 2029 (in the next 10 years) and will allocate 470-510MHz bands for digital TV broadcasting. In process of recalling, NBTC has given 2 options for digital TV operators including 1) switching to the range of 470-510MHz bands…
Author: Vorada Wanichprasertporn
Thai fruit exports to FTA markets up 107 percent
China, Malaysia, Singapore, Indonesia, the Philippines, Hong Kong, Australia and Chile are top importers of Thai fruits, especially fresh durian, mangosteen, longan and mango. Thai exporters are able to benefit from FTA privileges.
BANGKOK (NNT) – Thailand’s fruit exports continue to increase, despite the sluggish global economy caused by the COVID-19 pandemic, with key trade partners being countries that have free trade agreements (FTAs) with the kingdom.
The Future of Asia: greener but with a public and private debt hangover
The COVID-19 pandemic has been a perfect storm, destroying jobs, worsening poverty and inequality, and creating a public and private debt problem—especially for countries and firms already in fragile financial health beforehand
50:50 campaign may not get immediate extension
BANGKOK (NNT) – The government’s 50:50 co-pay campaign expiring on 31st March may not be getting an immediate campaign extension. The Minister of Finance says campaign evaluation is needed to improve future campaigns.
The Minister of Finance Arkhom Termpittayapaisith today announced the government may not be able to reach a conclusion on the extension of the 50:50 co-pay campaign in time for the current 31st March campaign end date, as evaluations are needed to better improve the campaign.
Originally introduced last year, the 50:50 campaign is a financial aid campaign for people impacted by the COVID-19 pandemic, in which the government subsidizes up to half the price of purchases at participating stores, with a daily cap on the subsidy amount of 150 baht, and a 3,500 baht per person subsidy limit over the entire campaign.
The campaign has already been extended once, with the current end date set for 31st March.
The Finance Minister said that payout campaigns for the general public are still valid in this period, allowing time for the 50:50 campaign to be assessed, and to address reports of fraud at some participating stores.
The Fiscal Police Office Director General and the Ministry of Finance Spokesperson Kulaya Tantitemit, said today that a bigger quota could be offered in Phase 3 of the 50:50 campaign beyond the 15 million people enrolled in the first two phases, while existing participants will need to confirm their identity if they want to participate in Phase 3, without the need to fill out the registration form.
Mrs Kulaya said the campaign will still be funded by emergency loan credit allocated for pandemic compensation, which still has about 200 billion baht available as of today.
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